N.Y. Insurance Law Section 2321
Enforcement and penalties

  • where prior approval is required

(a)

Rate service organizations shall be subject to examination by the superintendent, as often as he may deem it expedient, pursuant to the provisions of this chapter applicable to the examination of insurers. Rate service organizations which make rates, whether or not advisory, shall be examined at least once in every five years.

(b)

(1) If the superintendent finds that any rate filing theretofore filed does not comply with the provisions of this article or that such filing provides rates or rules which are inadequate, excessive, unfairly discriminatory, destructive of competition, detrimental to the solvency of the insurer, or otherwise unreasonable, the superintendent may order the filing withdrawn and the rate suspended prospectively upon fifteen days prior written notice to the rate service organization or to the insurer which filed them, provided, however, such rate service organization or insurer may request a hearing, in which case no withdrawal or suspension shall become effective pending the close of the hearing, which shall be held within fifteen days of the request. Within fifteen days after the close of the hearing, the superintendent shall determine an adjusted rate based upon the hearing record deemed to be in compliance with the standards set forth in this article, and the rate so determined shall apply prospectively for a period not to exceed one year.

(2)

At any such hearing, the insurer or rate service organization shall have the burden of justifying the rate in question. All such determinations of the superintendent shall be on the basis of findings of fact and conclusions. Nothing in this subsection shall preclude the superintendent from determining that the last previous rate in effect or the rate filed by the insurer or rate service organization complies with the standards set forth in this article. Nothing in this subsection shall preclude the insurer or a rate service organization from making or modifying any rate filing at any time.

(c)

Whenever the superintendent finds, after notice and a hearing, that unfair discrimination exists in the making or in the application of rates made or used by any rate service organization or by any authorized insurer, he may order that the rate service organization or the insurer remove the discrimination; but the same shall not be removed by increasing the rate on any risk affected by the order unless the rate is approved by the superintendent as reasonable. Before making such order, the superintendent shall give notice to the rate service organization, if any, which made such rate, and to all insurers and other persons which he may deem directly affected thereby. Every rate service organization receiving any such notice shall promptly notify all its members or subscribers who would be affected by the order, and notice to such rate service organization shall be deemed notice to its members or subscribers.

(d)

Proceedings pursuant to subsections (b) and (c) hereof may be instituted upon the initiative of the superintendent or upon written application to the superintendent by any aggrieved person or organization, other than a rate service organization, for a hearing, if the superintendent finds that the application is made in good faith and that the grounds otherwise justify holding such a hearing.

(e)

Any person, association, corporation or rate service organization wilfully violating the applicable provisions of this article shall, in addition to any other penalty provided by law, be liable to the people of this state for a penalty in an amount not less than twenty-five dollars nor more than one thousand dollars for each offense. If the superintendent finds after notice and hearing, that any authorized insurer, licensed agent or licensed insurance broker has wilfully violated any of the provisions of this article, he may, in lieu of any other penalty provided by law, order the insurer, agent or broker, as the case may be, to pay to the people of this state a penalty in the sum of one hundred dollars, for each offense, and the failure of any such person to pay the penalty within thirty days after the making of the order, unless the order is suspended by a court of competent jurisdiction, shall constitute a violation of the provisions of this chapter. Within the meaning of this subsection, the issuance, procurement or negotiation of each policy of insurance, by an insurer, agent or broker, as the case may be, in willful violation of the provisions of this article shall be deemed a separate offense.

(f)

This section shall be applicable to kinds of insurance or insurance activities the rates for which are subject to prior approval and which are subject to this article.

Source: Section 2321 — Enforcement and penalties; where prior approval is required, https://www.­nysenate.­gov/legislation/laws/ISC/2321 (updated Sep. 22, 2014; accessed Mar. 23, 2024).

2301
Purpose
2302
Applicability
2303
Standards for rates
2304
Rate making and supporting information
2305
Rates or rating plans
2306
Delegation of rate filing obligation
2307
Rating classifications or territories
2308
Imposition of prior approval
2309
Excess rate
2310
Informational filings
2311
Suspension of filing requirement
2312
Immigration bond premium
2313
Rate service organization
2314
Charging of rates
2315
Recording and reporting of experience
2316
Prohibition of anti-competitive behavior
2317
Joint underwriting or joint reinsurance
2318
Risk sharing plans
2319
Information to be furnished insureds
2320
Enforcement and penalties
2321
Enforcement and penalties
2322
Final determination
2323
Profitability and rates of return
2324
Rebating and discrimination
2325
Accounts and statistics
2326
Evaluation of competitive rating provisions
2327
Verification of driving history
2328
Certain motor vehicle insurance rates
2329
Motor vehicle insurance rates
2330
No fault motor vehicle insurance rates
2331
Motor vehicle comprehensive insurance rates
2332
Non-commercial private passenger automobile insurance rates
2333
Non-commercial private passenger automobile insurance rates
2334
Non-commercial private passenger automobile insurance rates
2335
Motor vehicle liability insurance rates
2335–A
Prohibition of rate increases for persons involved in emergency use of vehicles
2336
Motor vehicle liability, comprehensive and collision insurance rates
2336–A
Snowmobile liability insurance rates
2336–B
Boat liability insurance rates
2337
Private passenger automobile physical damage insurance
2338
Appeal from rate service organization action
2339
Charging or receiving of rates
2340
Credit property insurance
2342
Expiration of certain provisions
2343
Medical malpractice insurance rates
2344
Flexible rate limitations in problem markets
2345
Disclosure of premium reductions and surcharges
2346
Reduction in rates of fire insurance, homeowners insurance or property/casualty premiums for residential property
2346–A
Reduction in rates of certain commercial risk insurance premiums for real property
2347
Workers’ compensation rate changes
2348
Anti-theft and fraud savings
2349
Multi-tier program
2350
Flexible rating for nonbusiness automobile insurance policies
2351
Homeowners’ insurance policies
2352
Multiple rating programs
2353
For-hire motor vehicle safety program

Accessed:
Mar. 23, 2024

Last modified:
Sep. 22, 2014

§ 2321’s source at nysenate​.gov

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